In this article, we will take a detailed look at 10 Most Profitable Large Cap Stocks to Buy Now.
The most profitable large-cap stocks, in terms of absolute net profit, are typically concentrated in industries with relatively high barriers to entry and substantial global demand. These include sectors like technology, healthcare, energy and consumer goods, where leaders can benefit from strong market positions, innovation and economies of scale. Furthermore, strong profitability usually translates very well into cash flow, which gives a lot of flexibility with capital allocation – the companies can either reinvest in growth during favorable times or support the stock price through repurchases when the market is less favorable. Consequently, the advantages of investing in such companies include stability, the potential for consistent revenue growth, and resilience during economic downturns.
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In the last decade, the most profitable large cap stocks have mostly clustered in the technology sector, leveraging such factors as the giant global total addressable market and wide margins allowed by the technological advantage. Furthermore, some of these companies took the center of the stage during 2023-2024, a time when the AI megatrend opened a new growth frontier and led to rising stock market concentration; in other words, the most profitable companies became even more profitable. This trend has resulted in a widening gap between the leading tech giants and other sectors, as investors increasingly flock to these high-growth stocks, anticipating continued dominance and innovation.
However, besides technology, there are some business models that also allow for strong profitability and cash flow. First, there are energy leaders who are literal cash cows and generate tens of billions of dollars annually from energy operations, which are vital to the world economy and are unlikely to be disrupted anytime soon. Second, there is the financial sector, and particularly banks, which are considered the blood of the world economy – by intermediating operations worth trillions of dollars annually, the leading banks can capture a tiny share of those transactions, which overall results in giant amounts of net profit. Last but not least, some of the most profitable companies in the world can be found even in more competitive sectors like consumer discretionary.
We believe that the most profitable companies can enter the spotlight again at a time when the US and global economy are at an important crossroads. Not only are these companies immune to tariffs and less sensitive to macroeconomic conditions, interest rates, and consumer health, but they also generate tens of billions of dollars in free cash flow every year, which gives them flexibility to adjust to a new regime. Investor sentiment has shifted to a pronounced bearish, as the US stock market officially entered correction mode, with more than a 10% contraction since the February peak. It appears that the fears of Trump tariffs staying for the long-term, as well as the negative impact on GDP growth from major cuts in public funding, are finally hitting the markets. Going forward, as smaller-cap stocks are pressured by uncertainty and deteriorating consumer confidence, profitable large caps can become safe havens and attract capital. The key takeaway for investors is that if one wants to stay invested in the US equity market amid the current turbulent times, they’re better off sticking to the widest moat and most profitable names out there.
An analyst studying a graph of a company’s asset value and potential cash flow.
Our Methodology
To compile our list of most profitable large cap stocks, we searched for the publicly traded companies with the largest amount of net income generated in the latest financial year and ranked them accordingly. For each company we also include the number of hedge funds that own the stock, according to Insider Monkey’s database of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
Last year net income: $30.43 billion
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology and e-commerce company that operates through online retail, cloud computing, digital streaming, and artificial intelligence. Its e-commerce platform offers a vast selection of products, while Amazon Web Services (AWS) provides cloud computing solutions for businesses and governments. The company also develops consumer electronics, including Kindle, Echo, and Fire TV, and offers digital services like Prime Video and Alexa. Amazon operates globally, serving millions of customers through its logistics network, third-party marketplace, and subscription services.
Amazon.com, Inc. (NASDAQ:AMZN) reported Q4 2024 revenue growth of 10% YoY, with operating income reaching $21.2 billion, up 61% YoY. The company’s North America segment achieved 10% revenue growth while the International segment saw 9% growth excluding foreign exchange impacts. AWS demonstrated strong performance with 19% YoY growth, reaching a $115 billion annualized revenue run rate. The company’s focus on expanding selection, lowering prices, and improving convenience drove strong unit growth that outpaced revenue growth. Third-party sellers contributed significantly, making up 61% of items sold in 2024, marking the highest annual mix of third-party seller units ever. AMZN expanded same-day delivery sites by more than 60% in 2024, now serving over 140 metro areas, and delivered over 9 billion units same or next day worldwide.
In advertising, Amazon.com, Inc. (NASDAQ:AMZN) generated $17.3 billion of revenue in the quarter, growing 18% YoY, reaching a $69 billion annual revenue run rate – more than double from $29 billion just 4 years ago. The company has made significant strides in AI implementation, with approximately 1,000 different generative AI applications either built or in the process of building. Looking ahead to 2025, management plans to continue reducing costs through better inventory placement, expanding same-day delivery network, and accelerating robotics and automation throughout the network. With strong profitability and guidance in place, AMZN is one of the most profitable large cap stocks to buy now.
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Last year net income: $32.31 billion
NVIDIA Corporation (NASDAQ:NVDA) is a technology company specializing in GPUs, AI, and high-performance computing. Its GPUs are widely used in gaming, data centers, professional visualization, and autonomous vehicles. NVDA’s AI and deep learning technologies power applications in cloud computing, scientific research, and enterprise solutions. The company also develops system-on-chip (SoC) solutions for automotive and robotics industries. The company operates globally, supplying hardware and software solutions to industries that require advanced computing and AI capabilities. The California-based company ranked second on our recent list of 10 Hot AI Stocks to Buy Now.
NVIDIA Corporation (NASDAQ:NVDA) demonstrated strong performance with 18% sequential growth in data center revenue, driven by robust demand for their Hopper architecture. The company successfully launched Blackwell with significant initial revenue of $11 billion in Q4, despite facing supply chain complexities. NVDA’s networking business is positioned for growth in both InfiniBand and Ethernet segments, with a current run rate of approximately $2 billion in bookings. Regarding competition concerns, NVDA maintains that custom silicon development remains challenging, with many designs failing to reach market or requiring significant revisions.
NVIDIA Corporation (NASDAQ:NVDA)’s software and services strategy is evolving, with NVIDIA AIE and NIMs being crucial components for enterprise customers. On the financial front, while gross margins are temporarily impacted by supply chain expediting costs, the company expects to return to mid-70s margins in the second half of the year. Looking ahead, management sees significant growth potential in the AI market, emphasizing that there is still substantial opportunity with a $1 trillion installed base of general-purpose computing that needs transformation to accelerated computing. With more than $32 billion net profit in the latest fiscal year, NVDA is one of the most profitable large cap stocks to buy now.
8. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 13
Last year net income: $33.50 billion
Toyota Motor Corporation (NYSE:TM) is a global automotive manufacturer that designs, produces, and sells passenger vehicles, trucks, and hybrid and electric vehicles. Its product lineup includes popular models under the Toyota and Lexus brands, with a strong presence in hybrid technology through its Prius and other electrified vehicles. TM operates worldwide, with manufacturing plants and sales networks across multiple regions. The company is involved in vehicle electrification, hydrogen fuel cell technology, and autonomous driving research, and also provides financial services, including vehicle financing and leasing, to support its global customer base. The Japanese company ranked seventh on our recent list of 7 Cheap Global Stocks to Buy Right Now.
Toyota Motor Corporation (NYSE:TM)’s financial performance reflects successful improvement efforts, including price revisions, controlled incentives, and expanded value chain profits. The company’s success is attributed to recovered and stabilized production levels, continuous maintenance of high product strength through “ever-better cars” manufacturing and coordinated regional activities leading to customer satisfaction. TM has increased its investment in human resources and growth areas to 830 billion yen this fiscal year, focusing on workplace environment improvements and work style reforms. Significant strategic developments include the establishment of a new BEV and battery development facility in Shanghai, with planned production capacity of 100,000 units and 1,000 new jobs after 2027. Additionally, Toyota Battery Manufacturing North Carolina (TBMNC), representing a $14 billion investment with 5,000 planned jobs, will commence battery shipments in April, strengthening the company’s multi-pathway strategy through local production.
Toyota Motor Corporation (NYSE:TM) emphasizes that these financial results stem from customer support, with a focus on mass-producing smiles and happiness for customers through engaged employees, suppliers, and dealers working with purpose and enthusiasm. Management remains committed to active investment in people and growth areas to ensure continued development with all stakeholders. With more than $33 billion net profit in 2024, TM is one of the most profitable large cap stocks to buy now.
7. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Last year net income: $33.68 billion
Exxon Mobil Corporation (NYSE:XOM) is a multinational energy company engaged in the exploration, production, refining, and distribution of oil, natural gas, and petrochemical products. It operates through three main segments: Upstream, which focuses on oil and gas exploration and production; Downstream, which includes refining and fuel distribution; and Chemical, which manufactures petrochemicals used in consumer and industrial products. XOM has a global presence, supplying energy to various industries, including transportation, power generation, and manufacturing. The company invests in technologies related to energy efficiency, carbon capture, and alternative fuels. The Texas-based company ranked fifth on our recent list of 10 Best Low Risk Stocks To Buy in 2025.
Exxon Mobil Corporation (NYSE:XOM) demonstrated robust financial performance in 2024, reporting earnings of $34 billion, marking its third-highest result in the past decade, even amidst softer market conditions. The company generated $55 billion in operational cash flow, also the third highest over the last ten years, enabling profitable growth, financial stability, and shareholder rewards. On the operational side, XOM achieved record results in its Product Solutions division and reduced methane intensity by more than 60% since 2016. In the Permian Basin, the company set a production record from both Heritage ExxonMobil and Pioneer assets, with output projected to rise from 1.5 million oil-equivalent barrels per day at the close of 2024 to 2.3 million barrels per day by 2030. Similarly, record production was achieved in Guyana, hitting 650,000 barrels per day within just a decade.
Looking ahead to 2025, Exxon Mobil Corporation (NYSE:XOM) intends to launch several major projects that are expected to deliver over $3 billion in earnings potential by 2026. The company’s long-term vision remains optimistic, focusing on enhancing its asset portfolio, with 60% of Upstream production expected to come from advantaged assets by 2030. By the end of the decade, XOM anticipates an additional $20 billion in earnings and $30 billion in cash flow, while continuing its commitment to sustainable, competitive, and growing shareholder returns. With close to $34 billion net income generated in 2024, XOM is one of the most profitable large cap stocks to buy now.
6. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Last year net income: $39.40 billion
Meta Platforms, Inc. (NASDAQ:META) is a technology company that operates social media platforms, digital advertising services, and virtual and augmented reality technologies. Its core products include Facebook, Instagram, WhatsApp, and Messenger, which serve billions of users worldwide. META generates revenue primarily through digital advertising, offering targeted ad solutions for businesses. The company also develops hardware and software for the metaverse, including its Quest virtual reality headsets. META operates globally, focusing on digital connectivity, AI-driven content recommendations, and immersive technology development.
Meta Platforms, Inc. (NASDAQ:META) has built one of the leading industry teams on GenAI, with significant focus on infrastructure development and investment of $60-65 billion this year, largely directed towards AI infrastructure. The company’s Llama foundation model has seen remarkable adoption with over 800 million downloads, averaging 1 million downloads per day, and is being utilized by major companies like Zoom, Shopify, Spotify, and institutions like the Mayo Clinic. Meta AI has emerged as the most used AI assistant with 700 million monthly users across Facebook, Instagram, WhatsApp, and Messenger platforms.
Meta Platforms, Inc. (NASDAQ:META) is making significant progress in business messaging, particularly through WhatsApp, which has become a crucial communication channel for hundreds of millions of businesses, especially in markets like Brazil, Mexico, and India. META is also advancing in custom silicon development through its MTIA initiative, successfully implementing inference for recommendations through Artemis, which helps reduce costs for ad and video delivery workloads. The company’s Ray-Ban Meta smart glasses have shown strong user retention and are demonstrating promising use cases in areas like hands-free calling, music listening, and AI-assisted visual interpretation. With more than $39 billion net income in the latest fiscal year, META is one of the most profitable large cap stocks to buy now.
5. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 123
Last year net income: $56.87 billion
JPMorgan Chase & Co. (NYSE:JPM) is a global financial services company offering banking, investment, and asset management solutions. It operates through four main segments: Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking, and Asset & Wealth Management. The company provides services such as retail and commercial banking, investment banking, securities trading, and financial advisory. JPM serves individuals, businesses, and institutions worldwide, managing assets across various financial markets. It plays a key role in global finance through lending, capital markets, and wealth management solutions. The company ranked 5th on our recent list of 10 Companies That Are Buying Back Their Stock in 2025.
JPMorgan Chase & Co. (NYSE:JPM) demonstrated strong performance across multiple business segments, with Investment Banking fees projected to be up mid-teens YoY and markets revenue expected to be up low double digits as of 2025. The bank has made significant progress in technology modernization, with 65% of applications running significant workloads in the cloud and 95% of applications either moved to strategic data centers or operating on the cloud. The technology investment continues to grow, with spending expected to increase from just under $17 billion in 2024 to approximately $18 billion in 2025. The bank has successfully integrated the Commercial Bank and Investment Bank operations, creating synergies and removing organizational seams to better serve clients across segments.
In terms of AI implementation, JPMorgan Chase & Co. (NYSE:JPM) has deployed over 450 use cases across various functions including risk management, payment processing, trade optimization, and customer service, with more than 200,000 employees now having access to their proprietary GenAI platform, LLM Suite. The bank maintains a strong international growth focus while also seeing significant domestic opportunities, particularly in middle market business and retail branch expansion in major markets like Washington D.C., Philadelphia, and Boston, where they are not yet among the top three players. With more than $56 billion net income in the latest fiscal year, JPM is one of the most profitable large cap stocks to buy now.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 234
Last year net income: $73.80 billion
Alphabet Inc. (NASDAQ:GOOGL) is a global technology company that operates businesses in digital advertising, cloud computing, artificial intelligence, and consumer electronics. Its core subsidiary, Google, provides search, online advertising through Google Ads, YouTube, and cloud services via Google Cloud. GOOGL also develops Android, Google Play, Chrome, and hardware products like Pixel devices. The company invests in AI, autonomous driving through Waymo, and life sciences through Verily, and operates globally, offering digital tools and services to consumers, businesses, and developers across various industries.
Alphabet Inc. (NASDAQ:GOOGL) is strategically positioned to achieve significant success at scale in AI over a long period, with a comprehensive infrastructure stack including data centers, TPUs, GPUs, and research teams. The company’s cloud and YouTube platforms have reached a combined annualized revenue of over $110 billion. In terms of operational efficiency, Alphabet continues to focus on cost optimization while maintaining investments in strategic areas, particularly in AI and cloud. The company’s search metrics remain healthy, with increased engagement in AI Overviews and commercial queries, processing over 5 trillion queries annually. YouTube has emerged as the #1 streamer in the US in terms of watch time for two years, demonstrating strong growth across creators, viewers, and advertisers.
Alphabet Inc. (NASDAQ:GOOGL)’s capital allocation priorities focus on funding technical infrastructure, exploring M&A opportunities, and returning cash to shareholders, with $70 billion returned to shareholders last year. In Other Bets, GOOGL is strategically increasing investments in Waymo while making selective choices across other ventures, demonstrating a focused approach to long-term growth opportunities. With strong guidance ahead and almost $74 billion in net profit generated, GOOGL is one of the most profitable large cap stocks to buy now.
3. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 317
Last year net income: $88.14 billion
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud computing solutions, and hardware products. Its core offerings include the Windows operating system, Microsoft 365 productivity suite, and Azure cloud platform. The company also provides enterprise solutions, gaming through Xbox, and professional networking via LinkedIn. MSFT serves businesses, governments, and consumers worldwide, offering AI-powered services, cybersecurity tools, and developer platforms. It operates across multiple industries, delivering digital transformation solutions through software, cloud infrastructure, and computing devices.
Microsoft Corporation (NASDAQ:MSFT) reported strong performance in the latest Q2 with 75% constant currency bookings growth and significant Azure AI contracts. The company’s AI revenue primarily comes from inference and post-training workloads, along with Copilot revenue, totaling $13 billion. MSFT is experiencing capacity constraints in AI infrastructure but expects supply and demand to be in balance by the end of fiscal year 2024. The company is making significant investments in long-term data center assets, with plans to shift towards more server-focused investments once the global footprint is established. Microsoft 365 Copilot deployment exceeds expectations, with customers who initially purchased buying and using more, demonstrating faster adoption than previous enterprise products.
The partnership with OpenAI remains strategically important through 2030, with Microsoft Corporation (NASDAQ:MSFT) maintaining its position as their primary partner. The company is focused on building a flexible, global AI platform through Azure that can serve all types of workloads, positioning it for long-term growth. Despite some execution challenges in non-AI workloads, MSFT continues to see strong demand for both AI and traditional cloud migrations. The company is experiencing improved margin outlook for FY2025, driven by both AI-related efficiencies and operational cost management. With $88 billion net profit generated in FY2024, MSFT is one of the most profitable large cap stocks to buy now.
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 131
Last year net income: $88.99 billion
Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational conglomerate with a diverse portfolio of wholly owned subsidiaries and equity investments across industries such as insurance, energy, manufacturing, retail, and transportation. It owns companies like GEICO, BNSF Railway, and Berkshire Hathaway Energy, while holding significant stakes in publicly traded firms such as Apple, Coca-Cola, and Bank of America. The company generates revenue through its insurance underwriting, investment income, and the operations of its subsidiaries.
Berkshire Hathaway Inc. (NYSE:BRK-B)’s net earnings attributable to shareholders were $89 billion for 2024, including $41.6 billion in after-tax investment gains, which can cause earnings volatility. Insurance underwriting earnings were $9.0 billion in 2024, benefiting from improved results at GEICO, and included estimated claims from Hurricanes Helene and Milton ($1.2 billion after-tax) and a bankruptcy settlement accrual. BNSF’s after-tax earnings declined 1.1% due to a labor agreement charge and litigation charges, offset by higher volume, productivity, and lower costs. Berkshire Hathaway Energy’s earnings increased $1.4 billion, reflecting lower wildfire loss accruals and higher pipeline earnings. Manufacturing, service, and retailing earnings decreased 2.2%, with lower service and retailing earnings offsetting manufacturing increases.
No Class A or Class B shares were repurchased by Berkshire Hathaway Inc. (NYSE:BRK-B) in the fourth quarter of 2024. Cash, cash equivalents, and US Treasury Bills were $318.0 billion at year-end. Equity and fixed maturity securities, excluding Kraft Heinz and Occidental, were $287.0 billion. The company acquired the remaining Pilot ownership (20%) for $2.6 billion and BHE repurchased 5.85% of its outstanding common stock from noncontrolling shareholders for $2.9 billion. Consolidated borrowings were $124.8 billion. Operating cash flows were $30.6 billion, net of $28.5 billion in income tax payments, largely from equity security sales gains. All in all, BRK-B is one of the most profitable large cap stocks to buy now.
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Last year net income: $103.98 billion
Apple Inc. (NASDAQ:AAPL) is a global technology company that designs, manufactures, and sells consumer electronics, software, and services. Its core products include the iPhone, Mac, iPad, Apple Watch, and AirPods, along with operating systems like iOS and macOS. The company also generates revenue through services such as the App Store, Apple Music, iCloud, and Apple Pay. AAPL operates a global retail and online presence, offering seamless integration across its hardware and software ecosystem. It serves consumers, businesses, and developers worldwide, focusing on innovation, privacy, and premium user experiences.
Apple Inc. (NASDAQ:AAPL) delivered strong financial results for the latest December quarter, posting record revenue of $124.3 billion, a 4% increase YoY, and a record EPS of $2.40, which represents 10% growth. The company set all-time revenue records across various regions, including the Americas, Europe, Japan, and the rest of Asia Pacific, while gaining traction in emerging markets. Its Services segment achieved a new high with $26.3 billion in revenue, growing 14% YoY, and generated nearly $100 billion in revenue over the past year. AAPL’s installed base reached a milestone with over 2.35 billion active devices. iPhone revenue hit $69.1 billion, setting all-time records across numerous markets and regions. Mac revenue saw impressive growth, reaching $9 billion, up 16% YoY, and iPad revenue climbed 15% to $8.1 billion. The gross margin was robust at 46.9%, with Product margins at 39.3% and Services margins at 75%.
Looking ahead, Apple Inc. (NASDAQ:AAPL) anticipates low to mid-single-digit revenue growth YoY for the March quarter, despite a 2.5 percentage point impact from foreign exchange rates. The company is expanding its Apple Intelligence features, which have positively influenced iPhone sales in launched markets, and plans to extend them to more languages – including French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese – in April. In emerging markets, AAPL continues to excel, particularly in India, where it achieved a record-setting December quarter and plans to open additional stores.
Overall Apple Inc. (NASDAQ:AAPL) ranks first on our list of the 10 most profitable large cap stocks to buy now. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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